Post Session: Quick Review

In volatile trading session, Indian equity markets concluded Thursday’s trade in green aided by positive India's Services PMI data. Indices also witnessed some weakness during the day, as traders avoided to take position with their focus towards monetary policy outcome. Global markets offered some support to the markets. Healthy buying was seen in IT sectors’ stocks. As for broader indices, the BSE Mid cap index ended in red, while Small cap index ended in green.

Indices made optimistic start tracking strong global cues. Investors took support as CBIC chairman Sanjay Kumar Agarwal said the indirect tax collection for FY24 has exceeded the revised estimates (RE) of Rs 14.84 trillion by “a handsome margin”, helped by a record GST mop-up. Tax collection is a reflection of economic activity. However, markets failed to protect their gains and entered into red, as some cautiousness came in as a private report said that merchandise exports from India for the financial year 2023-24 (FY24) may show a contraction of around 1-1.5 per cent after two consecutive years of growth, even as March is likely to witness robust double-digit growth. Further in afternoon session, indices managed to recoup their losses, after data showing that India's services activity continued to expand in March, with the HSBC Purchasing Managers' Index (PMI) for the sector coming in at 61.2. Rising from 60.6 in February to 61.2 in March, the seasonally adjusted HSBC India Services Business Activity Index pointed to one of the strongest growth rates seen in over 13-and-a-half years. The upturn was largely attributed to healthy demand conditions, efficiency gains and positive sales developments. In late afternoon session, markets remained higher amid value buying by investors.

On the global front, European markets were trading higher with investors awaiting an inflation print and minutes from the European Central Bank's latest meeting. Asian markets ended in green with China, Taiwan and Hong Kong markets closed for a public holiday. Underlying sentiment remained supported somewhat after Federal Reserve Chair Jerome Powell reaffirmed his view that U.S. rates will be cut this year, but not anytime soon. Back home, Sebi Chairperson Madhabi Puri Buch said that Indian capital markets are commanding high valuations as foreign investors are bullish about the country's economic growth on the back of strong domestic macroeconomic data.

The BSE Sensex ended at 74,227.63, up by 350.81 points or 0.47% after trading in a range of 73,485.12 and 74,501.73. There were 20 stocks advancing against 10 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index declined 0.11%, while Small cap index was up by 0.54%. (Provisional)

The top gaining sectoral indices on the BSE were IT up by 0.93%, Consumer Durables up by 0.85%, Utilities up by 0.78%, Consumer Disc up by 0.68% and Bankex was up by 0.57%, while Oil & Gas down by 1.64%, Energy down by 1.01%, PSU down by 0.75%, FMCG down by 0.34% and Realty was down by 0.19% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were HDFC Bank up by 3.06%, Titan Company up by 1.98%, Tech Mahindra up by 1.74%, Asian Paints up by 1.72% and TCS up by 1.41%. On the flip side, SBI down by 1.52%, Bharti Airtel down by 1.44%, JSW Steel down by 1.01%, Power Grid down by 0.96% and ITC down by 0.60% were the top losers. (Provisional)

Meanwhile, India’s services sector activity rose to one of strongest rates since mid-2010 in March, as buoyant demand for Indian services created a cascade of positivity for the sector. March saw one of the strongest expansions in total sales and business activity in close to 14 years, helped by a series record upturn in new export orders.  According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index surged to 61.2 in March from 60.6 in February. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also jumped to 61.8 in March as against 60.6 in February. 

The report highlighted increased pressure on the capacity of service providers, which in turn supported the joint-fastest rise in employment since November 2022. Amid higher labour and material costs, there was a further increase in overall expenses at services firms. The rate of input price inflation was marked, faster than that seen in February and above its long-run average. The combination of rising cost pressures and demand strength encouraged companies to lift their selling prices in March. The rate of charge inflation climbed to its highest mark since July 2017.

Besides, services companies indicated that the substantial upturn in new business volumes added pressure on their capacities. Pending workloads rose for the twenty-seventh month running, and to the greatest extent since the start of 2023. Further, business sentiment remained strongly positive, but slipped to a four-month low. On the plus side, firms expect demand trends to remain favourable, with marketing efforts also seen as a growth opportunity. There were, however, some concerns surrounding competitive pressures.

The CNX Nifty ended at 22,514.65, up by 80.00 points or 0.36% after trading in a range of 22,303.80 and 22,619.00. There were 27 stocks advancing against 23 stocks declining on the index. (Provisional)

The top gainers on Nifty were HDFC Bank up by 3.06%, Eicher Motors up by 2.04%, Tech Mahindra up by 1.92%, Titan Company up by 1.89% and Asian Paints up by 1.71%. On the flip side, ONGC down by 2.31%, Shriram Finance down by 2.24%, Adani Ports down by 2.17%, BPCL down by 2.04% and Bharti Airtel down by 1.54% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 31.38 points or 0.39% to 7,968.82, France’s CAC rose 5.42 points or 0.07% to 8,158.65 and Germany’s DAX was up by 3.44 points or 0.02% to 18,371.16. 

Asian markets settled higher on Thursday, in thin holiday trade as markets of Hong Kong and China were closed for Ching Ming Festival, while Taiwan market was closed for Children's Day holiday. Seoul shares gained after Federal Reserve Chair Jerome Powell reaffirmed the central bank is on track to cut interest rate cuts this year. Japanese shares rose tracking gains of US tech shares, while the yen weakened broadly following a meeting of the country's leading monetary authorities.